There are businesses all around the state of Pennsylvania that would benefit from a predominant use study. The state requires these studies for the business to qualify for a utility sales tax exemption based on the percentage of electricity and natural gas used in qualifying applications.
The study is completed on a per meter basis, allowing the company in the manufacturing, processing, production industry, or other qualifying business to claim a percentage on each meter. In addition, the state also allows the company to claim a refund over the prior 36 months to the study for the same percentage.
There are several facts to keep in mind about the predominant use study process. These facts can help business owners to determine if the study is the right option.
No Disruption to the Business
The company completing the predominant use study should complete the process with no disruption to your business. They need access to your facility to confirm and verify the use of devices for qualifying processes to complete the study and perform the calculations and analysis.
Calculated on an Annual Usage Basis
Regardless of the time of year the study is completed, the business will receive the correct percentage based on an annual usage basis. This can be calculated by utilizing the past 12 months of utility bills on each meter.
When to Repeat
A business in Pennsylvania that adds equipment or increases its manufacturing capacity, makes significant changes in configuration, or has an operational change can request a new study. This is helpful to ensure the business is receiving the maximum utility sales tax exemptions based on new usage data.
To schedule a predominant use study for your Pennsylvania business, contact the team at B. Riley Financial. Details on our services can be found at brileyfin.com.
